Chipmaker
Company Nvidia has almost reached an agreement with Mellanox
Technologies, an Israeli chipmaker firm to acquire it. The
transaction to acquire Mellanox is in cash and will be sealed by
paying more than 7 billion dollar- a person close with the deal
mentioned on Sunday.

The
deal might be the biggest ever acquisition of Nvidia. The deal will
benefit Nvidia to enhance its business of making chips mainly for
data centers further enables it to reduce its reliance on their video
game industry.

Nvidia
is the leading bidder and has outbid the popular rival company Intel
Corp in the auction process. Although, the decision has not been
finalized yet and the final result might change, due to such
confidential information the person asked not to be named.

However,
representative of Mellanox, Nvidia and Intel companies did not
comment on the matter, Calcalist-the financial news website had
announced on Sunday that Nvidia had outbid Intel Corp.

Chips
of Mellanox are powered with high-speed networks for connecting
servers. Mellanox Technologies is situated in Israel and the United
States and has a market capitalization of around 5.9 billion dollars
as on Friday.

Nvidia
has it’s headquarter located at Santa Clara in California. Nvidia
under the leadership of Jensen Huang, who is the current CEO of the
company has witnessed huge and rapid growth in the recent years,
however, the slowdown in China and also decline in the craze of
cryptocurrency has made Nvidia in recent quarters to worry on its
sales.

The
news of acquiring Mellanox Technology by Nvidia has made the shares
of Mellanox Company to soar high. The Shares of Mellanox are in
Israel, Yokneam and Sunnyvale, California. The company has noticed a
growth of 66 percent from October. While in 2019, the rise was just
18 percent.

The
Israel financial newspaper Calcalist mentioned on Sunday that Nvidia
and its rival Intel were auctioning for the data center tech company
Mellanox and did not mention the source from where the information
was received.

In
January, The market capitalization of Nvidia was valued at 91 billion
dollars and has reduced its fourth-quarter revenue estimation by half
a billion dollar. The company cited the reason that a decline in the
demand of its gaming chips in China has been observed. It also has
further decreased the data center sales expectation.

Mellanox’s
Technology is very much vital in exchanging information from one
device to another, both within and between computers. It has become
very much important to know the rate at which chip direct traffic as
cloud service providers and corporate computer networks try to make
sense of the growing amount of data that is being generated.

Numerous
companies seek to incorporate such facilities into their list of
products so as to make their company more attractive and to impress
popular computer infrastructure buyers namely- Google, Microsoft
Corporation Azure, Alphabet Inc., and Amazon. Com Inc.

The
transaction still needs to be approved by regulators, and the process
could be a bit complex because of US and China trade stand-off. The
largest manufacturer of chips is the US, and China remains the
biggest consumer of the chips.

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